Update shared on 01 Dec 2025
Fair value Increased 0.28%The analyst price target for United Overseas Bank has been revised upward by S$0.10 to S$35.83. This change reflects cautious optimism as analysts cite asset quality concerns that may limit significant upside.
Analyst Commentary
Recent research reports reflect a range of views on United Overseas Bank, with commentary highlighting both opportunities and risks that may influence the bank's performance and valuation outlook.
Bullish Takeaways
- Despite downgrades, bullish analysts raise their price target, reflecting some confidence in the bank's underlying resilience.
- United Overseas Bank has historically delivered return on equity with the least volatility among major Singapore banks. This supports its reputation for stable execution.
- The pricing adjustment suggests analysts see some potential for value, particularly if asset quality concerns prove temporary or less severe than anticipated.
Bearish Takeaways
- Major firms have downgraded the stock, signaling that new asset quality risks may threaten earnings growth and share price momentum.
- Ongoing concerns around deteriorating asset quality could limit upside relative to the bank’s peers in the near term.
- Consensus highlights increased risk to earnings per share, which may serve as a catalyst for weaker performance if trends persist.
- Lowered price targets from leading investment banks highlight a more cautious outlook on the bank’s ability to deliver consistent returns moving forward.
What's in the News
- Wee Hur Holdings Ltd. has appointed United Overseas Bank Limited and DBS Bank Ltd. as joint lead managers and bookrunners for its Series 001 Notes, with Shanghai Pudong Development Bank Co. Ltd. Singapore Branch serving as co-manager (Client Announcements).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from SGD 35.73 to SGD 35.83.
- Discount Rate has fallen marginally from 6.98 percent to 6.97 percent, indicating a minor reduction in analysts' risk assessment.
- Revenue Growth forecast has edged down from 9.38 percent to 9.37 percent.
- Net Profit Margin has decreased marginally, moving from 41.43 percent to 41.40 percent.
- Future P/E ratio projections have increased, rising from 11.19x to 11.23x.
Disclaimer
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